Alex Tapscott told Cointelegraph that bear markets lead to great ideas being formed and new businesses being built.
Bear markets often result in investors showing extreme fear in tools that measure the market’s sentiments. However, despite the uncertainties during a crypto winter, some prefer to focus on the opportunities that it can bring.
Alex Tapscott, managing director at Ninepoint Digital Asset Group, told Cointelegraph that the bear market is a time to focus on building. Tapscott highlighted that it's essential to look beyond the market's prices and see the foundations that are being laid. Tapscott explained that:
“Crypto winters are always the best time to drill down on these core concepts, do the work and build for the future. The last bear market brought us the NFT revolution, decentralized finance, stablecoins and play-to-earn gaming.”
According to the executive, the current bear market will also prepare the groundwork for realizing Web3’s full potential. As an example, Tapscott said that decentralized finance (DeFi) can grow further and continue its trajectory as the financial system of the new internet. He said that:
“If Bitcoin was the spark for the financial services revolution, then DeFi is the accelerant. The fire spreading will engulf many firms that fail to innovate, adapt, and embrace this hot new industry.”
The executive also noted that people should look for developments in decentralized autonomous organizations (DAO). Tapscott said that DAOs will supplement corporations as the method for organizing resources.
During the current bear market, Tapscott mentioned that crypto-assets lost around $2 trillion in value, spurring mainstream media outlets to write obituaries for Bitcoin (BTC). However, the crypto veteran encouraged investors to keep their composure and find opportunities as bear markets often lead to great ideas being formed and new businesses being built. He said that:
“The most successful people in crypto are those who can keep calm and carry on. I don't know when this bear market will end, but I am highly confident that like all others, it will end.”
The executive also highlighted that the downward spiral of crypto prices is harrowing if investors look at the short-term time frame. However, Tapscott also said that the pain might end as investors seem to have cooled down.